State Attorneys General Urge Senate to Reject Federal Crypto Regulation Bill

A coalition of 18 state attorneys general has written to Congress to express opposition to the Digital Asset Market Clarity Act. Led by New York's Letitia James, the bipartisan group argues that the legislation would give fraudsters more room to operate and strip state attorneys general of their existing authority to shield investors.

The coalition contends that the bill would weaken investor protections currently provided by state-level regulators. This is particularly concerning in a state like New York, where the attorney general's office has historically been active in pursuing cryptocurrency fraud cases.

A procedural Senate vote on the bill is scheduled for September 15, with the attorneys general urging lawmakers to reject the legislation at this stage. The letter argues that stripping authority from state regulators would leave ordinary investors more exposed.